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Council reviews first readings on annexation and CRA tied to proposed Prologis data center
Summary
City Attorney Nick Ziepfel presented first readings of resolutions related to a proposed annexation of about 601.6 acres and an ordinance approving a Community Reinvestment Area (CRA) and companion compensation agreement with Prologis that would offer a 15‑year exemption on 75% of qualifying new structures and include voluntary payments to local schools and water infrastructure.
City Attorney Nick Ziepfel told the Council the City is processing an annexation petition for roughly 601.589 acres in St. Clair and Madison townships and presented required first‑reading resolutions on June 18. Under Ohio Revised Code Chapter 709, Ziepfel said the City must pass a statement of services and then either consent to or object to the annexation within the statutory window; the petition is anticipated to be filed before the July 9 meeting with a second reading expected then.
Ziepfel also described proposed project‑specific legislation to enter into a Community Reinvestment Area (CRA) agreement with Prologis and a related, voluntary compensation agreement. He said the CRA, allowed under the Ohio Revised Code and the City’s long‑standing CRA program, would provide a 15‑year exemption on 75% of qualifying new structures; land and the remaining taxable value would remain fully taxable. Ziepfel said the development contemplates one or two data‑center buildings, with the first two each projected to be at least 200,000 square feet and the project cost estimated at a minimum of $600 million.
Ziepfel and Finance Director Matthew Mesisklis summarized financial terms and community commitments: Prologis agreed to a voluntary $1 million payment split between the local school districts (Edgewood and Butler Tech) and $200,000 to the City’s Water Capital Improvement Fund. Mesisklis said the agreement also included an arrangement that, as a contingency on CRA approval, tap fees for four buildings would be paid upfront; the City has deposited about $2.7 million in water and sewer tap fees into its STAR Ohio account to fund future water infrastructure such as the new water tower.
Ziepfel said the project is estimated to create at least 120 new full‑time jobs with an annual payroll of roughly $5 million. He noted the companion payment to schools is voluntary and was negotiated by the City on behalf of the districts. Ziepfel and Mesisklis also said language referencing a TIF in an older draft was removed and that any existing TIF spending would remain subject to Council discretion through the budget process.
All items were presented as first readings; the transcript records no final Council votes on the annexation or CRA ordinance at the June 18 work session. Ziepfel said the City is aiming for a second reading at the July 9 meeting and confirmed statutory time windows under Chapter 709.
